Snowflake Q3 earnings have Wall Street analysts divided
One of the hottest IPOs this year was the Snowflake IPO which wrote about in September in our analysis Snowflake enters equity market with red hot valuation. Last night the company released its first earnings release and numbers were strong. Q3 revenue was $159.6mn vs est. $147.1mn and guided FY21 (ending in January 2021) product revenue of $538-543mn and Q4 revenue of $162-167mn which disappointed analysts and investors as it only translate into q/q product revenue growth of around 11%. We are guessing that the market is surprised about this number as it suggests a faster growth decay than were most analysts had expected. Most analysts have Snowflake shares at hold with a consensus price target of $293. On the positive note, customer commitments continued to rise rapidly in Q3 FY21 suggesting high revenue growth in the future is intact.